State Bank of India (SBI) and investment company Carlyle Group have concluded the purchase of GE Capital Group’s entire stake in Indian credit card franchise SBI Card.
The deal provides SBI with 74% ownership in the franchise’s joint-venture firms, SBI Cards & Payment Services and GE Capital Business Process Management Services, while Carlyle holds remaining 26% stake.
The firms originally reached an agreement for the acquisition in July 2017.
SBI managing director of Risk, IT & Subs Dinesh Kumar Khara said: “We are confident that we, together with Carlyle, will be able to take SBI Card to the next level of success. We have put the proper systems in place to increase our market share in the credit card business, and launched new initiatives to improve the synergy between SBI Card and the bank.”
Carlyle Group managing director Sunil Kaul said: “Today is an important milestone as SBI Card enters a new phase of development under this new partnership. Carlyle and SBI share the same vision for SBI Card and the credit-card industry and are very excited about the company’s growth prospects.”